Govt welcomes gas discovery as continue to seek investment: Gwede Mantashe

Following this discovery and confirmation of its potential, the company has indicated it will follow up with 3D seismic tests to be followed up by four exploration wells.

Mineral Resources Minister Gwede Mantashe has welcomed Total's significant gas discovery in the Outeniqua Basin off the southern coast of South Africa.

The French oil and gas company made the announcement on Thursday.

Following this discovery and confirmation of its potential, the company has indicated it will follow up with 3D seismic tests to be followed up by four exploration wells.

Mantashe visited the rig last Saturday to receive an update on the drilling project.

"It is exciting for our country that this discovery has been made. It is potentially a major boost for the economy, and we welcome it as we continue to seek investment to grow our economy.

"It further confirms that our decision to separate legislation for oil and gas from traditional minerals, so that we can support this sector in realising its full potential, is the correct one," said the Minister.

Mantashe said the government is moving with speed to finalise legislation to ensure that it's presented as soon as the sixth Parliament sits.

(With Inputs from South African Government Press Release)